RBI talks to Centre to find bad loans recovery ways

RBI is regular on talks with Centre and other investors to look for means to recover its bad debt; the bank wants to strength the bad debt recovery mechanism said by Deputy Governor of RBI, SS Mundra.

SS Mundra said that the controller has given many ways for bad loans recovery; however, some of these ways need to be reinforced.

Among many ways one tool is oversight mechanism which was created as part of Scheme for Sustainable Structuring of Stressed Assets with aim to sharpen and clear individual rearrangement deals.

He repeated that month March 2017 is limit given to the banks to onslaught their books and sufficiently provision against harassed assets.

As per Mundra debate about farm loan waiver has chosen up after it was used in election promise by (BJP during the UP Elections. After this other states are also debating on it. RBI warned against farm loan waivers and upheld that such schemes influence credit discipline.